Flagship Communities Real Estate Investment Trust (MHC-U) investor relations material

Executive summary

• Rental revenue grew 21.4% year-over-year to $30.4 million in Q2 2026, with NOI up 18.9% to $19.8 million, driven by higher occupancy, acquisitions, and lot rent increases.

• Net income for Q2 2026 was $4.2 million, down 87.9% year-over-year due to lower fair value adjustments and non-recurring items in the prior year.

• Growth achieved through organic initiatives, disciplined expansion, and a strategic acquisition of a fully occupied 28-lot community in Northern Ohio, expected to be accretive to AFFO.

• Sawyier Pointe recognized as Kentucky Manufactured Housing Institute's Community of the Year for the fifth consecutive year.

• Continued focus on improving resident experience and maintaining a stable, conservative balance sheet.

Financial highlights

• Rental revenue and related income reached $30.4 million in Q2 2026, up from $25.1 million in Q2 2025; NOI margin declined to 65.1% from 66.6%.

• FFO adjusted rose 10.2% to $9.9 million; AFFO adjusted increased 8.3% to $8.9 million year-over-year.

• Same-community revenue grew 9% to $27.3 million and same-community NOI increased 6.3% to $17.7 million year-over-year.

• Same-community occupancy reached 85.4%, up from 83.4% at year-end 2025.

• Weighted average lot rent was $516 as of June 30, 2026, up from $483 at year-end 2025.

Outlook and guidance

• Expect to maintain organic growth by investing in resident experience and maximizing operational efficiencies.

• Guidance for lot rent increases remains at 4%-5% for January 1st, reflecting stable Midwest market conditions.

• Anticipate holding occupancy gains through year-end, targeting 1%-2% same-community occupancy growth.

• Positive outlook for the MHC sector, citing high barriers to entry, rising homeownership costs, and limited new supply.

• No substantial debt maturities until 2030, supporting financial stability.